Gas Coordination Group: Solidarity works and
the EU's gas market adapts to challenges of gas crisis

The mitigation measures undertaken by EU companies
and Member States have allowed most countries to successfully manage the
situation in a way which is the least disruptive for their consumers. Bulgaria
remains the worst affected country but some measures have been proposed to bring
gas from Greece to Bulgaria.

After the shock of the cut on 7 January, the Internal Gas Market managed to
compensate for missing supplies in countries like Slovakia Austria, Hungary,
Slovenia, Poland and even Croatia. Bulgaria is still hoping for a partial
solution through deliveries of gas from Greece. Those are the main conclusions
of the meeting of the gas coordination group that has taken place today in
Brussels to evaluate the situation in the affected Member States as a
consequence of the Russia-Ukraine gas crisis.

Each affected country gave the latest information on the measures taken to
mitigate the consequences of the disruption of supply and industry
representatives confirmed a number of important measures taken recently to
address the situation of the most affected countries.

The group welcomed the following measures taken mainly by industry:

the gas industry reacted and adapted to the changed situation: for Slovakia
the East-West flow was reversed and gas delivered from Germany through the Czech
Republic; German gas companies in particular also supplied additional amounts of
gas through Austria to Hungary, Slovenia, Croatia, Serbia and
Bosnia-Herzegovina;

the higher withdrawal from gas storage in countries having such facilities,
some of which were also able to help neighbouring countries ( Hungary in
particular, providing gas from its strategic stocks to Serbia)

domestic production of gas within the EU, was increased as much as possible,
and the UK increased its exports to the Continent; certain production margins in
the Netherlands and Denmark could also be readily available and used as
transmission capacity in the coming days;

the possibility of Greece helping out Bulgaria to a certain extent in the
coming days with gas from its LNG terminal;

the use of LNG supply, particularly in Greece but also in
Belgium.

Demand management has been widely used particularly where
contracts which were able to be interrupted and fuel switching possibilities are
in place. Some countries have had to discontinue supply to industrial consumers
having no possibility of switching (eg FYROM).

As a result of these measures, mitigating the situation for most of the
affected countries, Bulgaria remains the worst affected country. All other
countries are successfully managing the situation in a way which is the least
disruptive for their consumers.

Provided temperatures do not drop again and the additional supplies of gas
can be maintained, the countries concerned, besides Bulgaria, would be able to
manage the current situation for several weeks if not throughout the winter. The
necessary adaptations will however, provoke additional costs for their
industries.

The Commission will call for a meeting of the Directors General for Energy of
the 27 Member States next Wednesday to study the situation from a broader energy
point of view. At the same time, Commissioner Pieblags has decided to send
Energy Deputy Director, Dominique Ristori to Bulgaria and Slovakia tonight to
evaluate the situation on the ground and identify possible solutions. He has
also sent Energy Deputy Director Fabrizio Barbaso to visit the most affected
countries in the Energy Community Members in the Balkans. He will start his
mission in Croatia tomorrow morning.

The situation remains tight and lower temperatures in the coming days could
render the situation more critical, especially if the short-term contracts
agreed at industry level could not be prolonged. The Commission therefore
demands that the supply of gas from Russia, through Ukraine, is resumed as
quickly as possible.

The European Commission would like to thank the EU partner countries Norway,
Algeria and Libya who are providing the EU in this time of crisis with a steady
and even increasing supply of natural gas.

The Gas Coordination Group has not fixed a new data for its next meeting, but
it is ready to come back to Brussels, next week if the situation calls for
it.

Background

The Gas Coordination Group was created in 2006 according to Directive 2004/67
relating to measures that guarantee security of natural gas supply. Chaired by
the European Commission, it is composed of gas competent representatives of
Member States, the European organisations of the gas sector and consumers. The
Group meets regularly (at least 4 times per year) to exchange information and to
develop both short and long term concrete measures which reinforce the security
of gas supply to the EU.